With savings of more than 56%, why wouldn't you use eSourcing?

Situation

  • Large European Retailer needed to purchase pallet covers for transportation of food items to all retail destinations
  • The goal was to secure a 12 month contract with a single supplier and avoid price fluctuations and other surcharges
  • Suppliers had to comply with existing hygiene and anti-contamination regulations as well as other safety and health-related specifications

Solution

  • Volumes were consolidated from all retail divisions into a single event to make for more compelling bid
  • A List Auction was chosen to facilitate a single award
  • After qualification, 6 suppliers were invited to participate in the eAuction
  • Parameters for quality, field support and product compatibility were included in the auction to ensure apples-to-apples bids

Result

  • The company achieved 56.25% savings compared to the historic pricing
  • 12-month contract provided price stability for buyer
  • The client also reported significant time savings by substituting multiple negotiations rounds by a single event
  • Bid completed in 24 minutes!